TimelessWealth.net Issues Overlooked Trading Idea with Petroflow Energy Ltd.: PED ($0.93)

TimelessWealth.net has issued an overlooked trading idea with Petroflow Energy Limited (PED), an oil and natural gas company.

[ClickPress, Tue Sep 22 2009] TimelessWealth.net has issued an overlooked trading idea with Petroflow Energy Limited (PED), an oil and natural gas company. Since bottoming in early September, the Natural Gas Index ($NATGAS), has rebounded as high as $4.82, representing growth of 100%; to-date having appreciated 93%. Petroflow Energy Limited experienced similar price movement, but to date has appreciated less than 37% during the same time frame. The market is selectively targeting undervalued Natural Gas producers in anticipation of a year-end 2009 rally, as eminent Seeking Alpha columnist, Joseph L. Shaefer writes, “Natural Gas: America's Energy Salvation”. Trailing the Natural Gas Index, Petroflow Energy Limited may very well fill investors’ criteria and appreciate in price, as a result. Our complimentary technical analysis examining the price movement of Petroflow Energy Limited, relative to the Natural Gas Index, follows here (please click to view).

Petroflow Energy Ltd. engages in the exploration, development, and production of oil and natural gas in Oklahoma, Texas, and Alberta. It produces approximately 3,688 boe/day of oil, natural gas, and natural gas liquids; and has access to approximately 101,489 gross acres of undeveloped land. Petroflow Energy Ltd. was incorporated in 1974 and is headquartered in Calgary, Canada. The company focuses primarily on Natural Gas production (82%); Oil production, secondary (18%).

The Oil & Gas Drilling & Exploration industry has an average price to earnings (P/E) ratio of 16, whereas Petroflow Energy Limited (PED) currently ($0.93) trades at a P/E of 4.65. Price to earnings ratios are important calculations value investors use in recognizing an undervalued company. It is often considered that a P/E ratio under 10 is suggestive of an overlooked market, one which will eventually adjust and provide for a high return on investment (ROI). According to yahoo finance Petroflow Energy’s trailing twelve months (ttm) revenue amounted to $34,900,000; net income, $6,320,000. There are 29,509,894 shares issued and outstanding as of June 30th, 2009, the most recent quarter. With fully diluted earnings per share (EPS) of $0.20 (net income divided by shares issued and outstanding), a fair value calculation, EPS ($0.20) multiplied by the industry’s P/E ratio (16) derives fair market value of $3.20 per common share, representing a potential ROI of 244%. Petroflow Energy’s market capitalization, $27,444,201, represents a potential 212% ROI, when adjusted to the Oil & Gas Drilling & Exploration industry average market capitalization of $85,660,000.

As Natural Gas rallies into 2010, we anticipate small-cap Natural Gas producers, such as Petroflow Energy Limited (PED), will exhibit vast potential for a high ROI. We strongly encourage you review this trading idea with further research. Our report is designed to cover key technical and fundamental concepts while providing a starting point with due diligence material.

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